Praemium’s total Funds Under Administration surged 21% to $77.9 billion in FY26, driven by strong platform net inflows and robust growth in non-custodial portfolio administration.
- Total FUA up 21.1% to $77.9 billion
- Platform FUA grows 10.8% to $34.0 billion with $1.9 billion net inflows
- Scope+ non-custodial administration FUA rises 30.5% to $43.9 billion
- Technotia integration delivers $9 million in annual tech cost savings
- Adviser demand strong in high-net-worth segment despite adviser exits
Robust Platform Growth Amid Adviser Transitions
Praemium Limited (ASX:PPS) closed FY26 with a solid 21.1% jump in total Funds Under Administration (FUA) to $77.9 billion, underpinned by a $1.9 billion surge in net platform inflows. The core platform FUA climbed 10.8% to $34.0 billion, buoyed by resilient adviser demand, particularly from the high-net-worth (HNW) segment. This momentum highlights the company’s ability to attract and retain clients with increasingly sophisticated portfolio needs, including a growing appetite for alternative assets and complex structures.
Despite known adviser exit-related outflows totalling $522 million during the year, including those linked to OneVue, these outflows have been steadily declining. Praemium expects this drag to ease further into FY27 as major platform migrations conclude and adviser attrition stabilises.
Non-Custodial Portfolio Administration Accelerates
The standout performer was Praemium’s Scope+ non-custodial portfolio administration, which posted a 30.5% increase in FUA to $43.9 billion alongside a 33.7% rise in portfolio numbers to 12,793. This growth was fuelled by the successful onboarding of Bell Potter Private Wealth clients expanding beyond Scope+ into Spectrum and SMA solutions, as well as new advice groups and the return of former clients.
Multi-year enterprise agreement renewals with Morgan Stanley Wealth Management and JB Were underscore the strength and longevity of Praemium’s client relationships. These contracts provide a stable revenue base and reflect the strategic importance of Praemium’s administration and reporting capabilities in the private wealth sector.
Technology Transformation Yields Cost Savings and Efficiency
Praemium’s ongoing technology overhaul, anchored by the integration of AI innovator Technotia, is beginning to deliver tangible benefits. The company forecasts an annualised $9 million reduction in technology costs, achieved through a streamlined tech team and a modern, modular platform architecture designed to accelerate product development and client onboarding.
An independent technical review is underway to validate progress and the commercial assumptions behind revised incentive arrangements for Technotia’s founders, who have transitioned to consulting roles. This transformation aims to enhance operating leverage and support revenue growth by simplifying the operating model and enabling faster release cycles.
Strategic Execution and Market Positioning
Praemium’s FY26 strategy focused on targeted investments, cost discipline, and improving operational execution. The company added 330 new investment options across its Spectrum, Powerwrap, and SMA menus, supporting flexible portfolio construction and disciplined governance. Onboarding processes improved, shortening time-to-value for new clients and accelerating revenue contributions.
CEO Anthony Wamsteker emphasised the company’s strengthened foundations following key enterprise renewals, integration milestones, and technology progress. He highlighted the clear pathway to enhanced operating leverage into FY27, driven by sustained adviser engagement and the rollout of the next-generation wealth management platform.
Bottom Line?
Praemium’s strong FY26 net inflows and technology-driven cost savings set the stage for improved operating leverage, but execution risks around adviser retention and platform transformation remain key to watch.
Questions in the middle?
- How will adviser exit-related outflows evolve in FY27 as platform migrations settle?
- What impact will the independent technical review have on Praemium’s revised incentive arrangements?
- Can Praemium sustain growth in its non-custodial administration amid increasing competition?